مجلة بحوث الإدارة والاقتصاد
Volume 5, Numéro 4, Pages 707-724
2023-12-31

The Impact Of Trade Openness On Human Capital In Algeria For The Period (1990-2022)

Authors : Sahli Lazhar . Bousba Sihem .

Abstract

This study is an attempt to examine the impact of trade openness on human capital in Algeria for the period from 1990 to 2022. It has been using Autoregressive Distributed Lag Model (ARDL) because of this model is advantageous and suitable for small samples and data of stationary in the first-difference, the level or a combination of the two. In addition to that, this study arrives to a long-term balanced relationship between the study variables. This is because the negative and not significant relationship between the human capital, represented by the number of enrollments in secondary schools (Educ), and the government expenditure on education (govED) per capita growth. On the other hand, it was positive and not significant with the trade openness index (Op). Furthermore, the relationship was negative and significant with the government expenditure on health (govH) per capita growth and the total labor force (LF). As it was expected, the error correction factor was negative and significant. Thus indicates that the estimated model includes a mechanism for returning to balance again.

Keywords

Trade openness ; human capital ; Algeria ; Auto-regression Distribution Lag Model (ARDL)